An Increase in the Real Exchange Rate Indicates That

question 32

Multiple Choice

An increase in the real exchange rate indicates that:

• A) domestic goods are now relatively more expensive.
• B) domestic goods are now relatively cheaper.
• C) foreign goods are now relatively cheaper.
• D) Both A and C.
• E) Both B and C.

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Definitions:

Sensilla

refers to sensory organs or structures in arthropods, such as insects, that detect changes in the external environment.

Electrical Potentials

The difference in electric charge between two points, which can drive the flow of electrons or ions and is fundamental in biological processes and electrical circuits.

Electroreceptors

Sensory organs found in certain animals, allowing them to detect electric fields in their environment.

Magnetic Reception

The ability of an organism to detect magnetic fields, used for navigation and orientation.